“It’s made for Sleep. It’s a Sealy. ”TM

2

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the safe harbor provisions of the Securities Litigation Reform Act of 1995. Terms such as "expect," "believe," "continue," and "grow," as well as similar comments, are forward-looking in nature. Although the Company believes its growth plans are based upon reasonable assumptions, it can give no assurances that such expectations can be attained. Factors that could cause actual results to differ materially from the Company's expectations include: general business and economic conditions, competitive factors, raw materials purchasing, and fluctuations in demand. Please refer to the Company's Securities and Exchange Commission filings for further information.

3

Investment Highlights

3

Industry Leader

Favorable Industry Dynamics

Premier Position with Retailers

Well-Positioned Internationally

Operating Improvement Opportunities

Strong Cash Flow Generation

Experienced and Committed

Management Team

Compelling

Growth

Opportunity

4

Industry Leader

World’s Largest Bedding Manufacturer ...

#1 U.S. market share for two decades with ~ $1.5 billion in total world wide net revenuesApproximately 60% larger than nearest competitor2

#1 market share in Canada#1 selling domestic bedding brand for over 25 years

(1) Source: Furniture Today. Sealy market share includes domestic licensee revenue. (2) Based on management estimates for 2005 and public filings.

Top 5 2005 U.S. Market Share1

20.9%

13.3% 12.7%

6.6%5.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

% o

f To

tal W

ho

lesa

le In

du

stry

Sal

es

Sealy Simmons Serta Tempur-Pedic

SpringAir

5

…With the Broadest Product Portfolio

Source: International Sleep Products Association (ISPA)(1) Represents Compounded Annual Growth Rate (CAGR).

Sealy BrandsSealy Brands

Price PointPrice Point <$500<$500$1,000$1,000--$1,999$1,999 $500$500--$999$999>$1,999>$1,999

SegmentSegment BudgetBudgetLuxuryLuxury MidMid--TierTierUltra LuxuryUltra Luxury

2005 Market Size2005 Market Size $2.0B$2.0B$1.6B$1.6B $2.4B$2.4B$0.4B$0.4B

2000 2000 –– 20052005Unit GrowthUnit Growth11 1.0%1.0%6.9%6.9% (0.6)%(0.6)%16.7%16.7%

Industry Leader

6

Bedding Industry Dynamics & Growth Drivers

Favorable Industry Dynamics

Strong and Steady Industry Growth

Shift to Luxury Bedding

Favorable Retailer Economics

Brand-Driven Industry

Limited Exposure to Mass Merchants

Limited Exposure to Imports

7

Ho

usin

g S

tarts (Bn

)

$2.1

$3.0

$4.0

$6.4

$5.2

$5.8

$1.3

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

Wh

ole

sale

In

du

stry

Sal

es (

$ B

n)

GD

P ($ trillio

ns)

’92-’00 CAGR 7.6%

Strong and Steady U.S. Industry Growth

Recession

’83-’89 CAGR 6.4%

6.5% U.S. Bedding Industry CAGR over 25 years

Source: ISPA; Management estimate for 2005¹ Source: Bureau of Economic Analysis. ² Source: National Association of Home Builders.

Favorable Industry Dynamics

YoYGrowth

10%12%8%4%(0%)5%9%11%8%5%5%9%8%8%3%0%2%8%9%7%6%7%16%(2%)5%

RecessionRecession

2.0

6.0

10.0

14.0

1.00

1.50

2.00

2.50

Wholesale Industry Sales ($ Bn) GDP ($ trillions)¹ Housing Starts (Bn)²

~~

8

Sustained Profitable Growth

Compelling Growth Opportunity

Most Recognized Brand

Focus on Key Market Segments

Premier Position with Key Retailers

Leverage Sales Force Strength

Leverage Capabilities Worldwide

DomesticInnerspring

Specialty Bedding

International

Drivers of Growth Sources of Growth

9

Product Innovation Key to Ongoing Growth

Structured and cross-functional teams

Mandate for breakthroughs in bedding systems

Increased focus R&D and engineering resources

Enhanced human capital

New Product Development Process

Pipeline prioritization

Consumer and product research

Marketing reorganization to drive product development and speed to market

Consumer Marketing Priorities

Launched

S&F Collection

Launch

PosturepedicFR Launch

TrueForm and

SpringFreeLine

Expansions

Planned

Growth Opportunity: Product Innovation

Drive

Sealy Brand

& Basset FR Launch

RightTouchAirBed

Test

TrueFormPillowtop

OngoingProduct

Innovations

10

Consistent innerspring growth- 6.5% industry CAGR over 25 year period

- ~70% of industry sales are replacement purchases

Strong brand recognition in brand-driven business- Comprehensive product range across all price points

- Optimizes position with key retailers

Well-positioned in high-end >$1,000 market segment- Portfolio of high quality hybrid products

Brand extension opportunities- Success of Sealy 125th and Stearns & Foster 160th Anniversary beds

Proprietary technologies and designs

Domestic Innerspring Opportunity

Growth Opportunity: Domestic Innerspring

Sealy has completed the rollout of approximately 75% of the product line to comply with new Fire Retardant

requirements which go into effect in July 2007

Domestic Innerspring –~75% of Sealy’s Revenues

11

Specialty Bedding Opportunity

Leverage brand strength, sales force, innovation capabilities and proprietary manufacturing processes

Provide a portfolio of specialty products

Latex

- Stearns & Foster and Bassett latex

- Posturepedic SpringFree latex

Memory Foam

- 8”, 9” and 11” Posturepedic TrueForm

- 11” pillowtop

Air

- RightTouch in test market

Specialty Bedding Strategy

Growth Opportunity: Specialty Bedding

12

Specialty Bedding Opportunity

Source: ISPA; Management; specialty bedding includes adjustable beds

Growth Opportunity: Specialty Bedding

2005 U.S. Market Shares

% o

f T

ota

l Sp

ecia

lty

Bed

din

g W

ho

lesa

le In

du

stry

Sal

es$1.3B

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Other39%

PedicTempur-

32%

ComfortSelect

25 %

Sealy 4%

Opportunity to grow share in fast growing market segment:

• Segment growing quickly:- +30% in 2005- +20% estimated through

3Q2006

• Sealy growing faster:- +130% in 2005- + 100% estimated through

3Q2006

13

International Business –Profitable and Growing

Solid platform to capitalize on large and growing world bedding market opportunity

- #1 in Canada with significant scale, growing share and highly profitable operations

- Upside potential in Europe; low cost “beachhead” in fragmented market

- Stable and growing cash flow stream from licensees

- Strong growth platform in key developing markets

Source: Management reports(1) Total International System Sales includes grossed up licensing revenue.

Total International System Sales¹ CAGR ’99-’05

13.8%

5.1%

23.2%

Growth Opportunity: International

$92.1

$321.8

$240.1

$148.0

$199.6

$521.4

$0

$100

$200

$300

$400

$500

$600

1999 2005

International License RevenueNet International Sales

14

North American markets had sales of $1.4 billion in fiscal 2005

This new structure will allow Sealy to better leverage:- product development

capabilities and lean manufacturing initiatives

-growing consumer demand, partner with Sealy’s retail customers, and deepen supplier relationships

Led by Larry Rogers and Mike Hofmann

North American Leadership Structure

North America -- An Integrated Market

Experienced and Committed Management Team

Plant

Component plant

15

Financial Summary

16

Strong Cash Flow Generation

Adjusted EBITDA1-Capex

$145

$177 $204

13.5% 13.9%12.2%

$0

$50

$100

$150

$200

$250

2003 2004 2005

Ad

just

ed E

BIT

DA

-C

apex

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

% o

f Sales

Strong EBITDA1 margins and growth rates

Low capital intensity business

Minimal inventory requirements from just-in-time manufacturing

Effective working capital management through reduced accounts receivable (A/R) and optimized accounts payable (A/P) days

Low capital expenditure requirements

Capex as % of Sales 1.1% 1.7% 2.0%

Strong Cash Flow Generation

1 Adjusted EBITDA is defined as net income plus interest, taxes, depreciation and amortization, further adjusted to exclude unusual items and other adjustments permitted in calculating covenant compliance in the senior secured credit facilities,

17

Lean Manufacturing

- $43 million of cost reduction delivered since fiscal 2004

- Labor productivity and scrap improvement

- 29% reduction in worker compensation claim values in fiscal 2005 vs. fiscal 2004

40%

60%

80%

100%

120%Ju

n-0

4

Jul-

04

Au

g-0

4

Sep

-04

Oct

-04

No

v-04

Dec

-04

Jan

-05

Feb

-05

Mar

-05

Ap

r-05

May

-05

Jun

-05

Jul-

05

Au

g-0

5

Sep

-05

Oct

-05

No

v-05

% C

han

ge

Assembly Plants Labor Hours/Piece ProducedScrap Lbs/Piece Produced

Operating Efficiency Improvements

Source: Management estimates for domestic business onlyNote: Graph indexed to 2004 values.

Continuous Improvement Programs

- Value engineering of new product designs

- Optimize logistics and working capital management

(18%)

(44%)

Labor Productivity / Scrap Improvement

Operating Improvement Opportunities

Opportunity to drive margin expansion

18

Financial Update Through 3Q2006

$190

44.7%

$1,188

YTD 2006

3.8%$183Adjusted EBITDA1

20 bp44.5%Gross Margin

7.5%$1,105Net Sales

YTD 2005($ in millions)

1 Adjusted EBITDA is defined as net income plus interest, taxes, depreciation and amortization, further adjusted to exclude unusual items and other adjustments permitted in calculating covenant compliance in the senior secured credit facilities,

Annual Long-Term Targets:• Sales growth in the mid-to-high single digit • Margin expansion average of 20-50 basis points• EBITDA growth of 10%• EPS growth in the mid teens

19

Investment Highlights

19

Industry Leader

Favorable Industry Dynamics

Premier Position with Retailers

Well-Positioned Internationally

Operating Improvement Opportunities

Strong Cash Flow Generation

Experienced and Committed

Management Team

Compelling

Growth

Opportunity

“It’s made for Sleep. It’s a Sealy. ”TM